Territorial Branding as an Instrument for Competitiveness of Rural Development

Abstract

The conceptual foundations, principles, and mechanisms of territorial branding concerning the prospects of rural development in the Third World countries are the subject of the study. The systematization and study of the problems andexperiences of territorial branding as a technology of development and overcoming of poverty in the agrarian society of Ukraine is the purpose of the paper. The socioeconomic condition of the modern agrarian society of Ukraine is analyzed with explaining the nature and extent of poverty in rural areas. The basis of the research was the thesis on the expediency of social stratification, including explanation of the causes of poverty by the criterion of economic behavior of individual groups of agents. The data obtained areavailable in adjusting further agrarian reforms, especially regarding its social orientation, it should be involved: sociological stratification of groups of agents of each community to identify and stimulate an economically active society, analysis of the causes of the spread and nature of poverty in this rural area, determination of domestic sources of economic growth for local economy, and the implementation of these factors in the process of modernizing of economic relations. The main method of research was the study of the unique experience of individual rural communities. The methodology of the study foresaw the study of the prospects of rural development of the post-industrial type through the determining role of the factor of territorial branding. Monitoring the potential of territorial branding for rural areas of Ukraine using SWOT analysis has shown the uniqueness of risks, limitations, and prospects. It has been established that the conditions of neutralization of weaknesses and risks are in the combination of economic (primarily investment) and cultural and political initiatives, a significant role belongs to the effects of community selforganization. At the same time, the prospects are due to the presence of unique institutional assets, natural, climatic and economic conditions, and possible perception of the idea of the rural population as such, which does not contradict the basic cultural values. The emphasis is placed on the fact that the realization of rural development in Ukraine as a national policy should take into account that Ukrainian rural communities remain “difficult,” mostly depressed economies, the level of economic activity is traditionally low and unemployment is high. At the same time, studying the experience of the effectiveness of territorial branding allowed to generalize and classify the factors of brand-forming content for the rural areas of Ukraine, which became (1) a unique institutional history; (2) landscape and recreational potential; (3) special economic behavior of local inhabitants; (4) investment attractiveness of the territory; (5) unique economic specialization of the territory; (6) tourism activity; and (7) the role of local government. Significant socioeconomic effect of these examples is fixed. The area of application of these results is, first of all, the activity of local authorities of rural communities, nongovernmental organizations, and universities, as well as regulatory policy in terms of decentralization.